At the beginning of the year, A Corporation had $5,000 worth of office supplies. During the year, office supplies purchased totaled P22,000, and was recorded by debiting Supplies Expense and crediting cash. At the end of the year, $7,000 worth of office supplies remain. W

Q: The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following…

A: Closing Entries: Closing entries are those journal entries that are passed to transfer the balances…

Q: An entity is a resort located in Palawan. The entity collects cash when guests make a reservation.…

A: Unearned revenue represents the liability for the company. Therefore, if it has been earned by the…

Q: The following information was extracted from the records of Terra Ltd for the year ended 30 June…

A: The process of recording business transactions in the books of accounts for the first time is known…

Q: E4-5 In its first year of operations, Ramirez Company recognized $28,000 in service revenue, $6,000…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Q: After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances…

A: Closing entries are used to transfer the balance from a temporary account to a permanent account. We…

Q: On March 1, Year 1, Presco Enterprises paid $1,200 cash for an insurance policy that would provide…

A: Insurance, if paid for future period, is treated as prepaid insurance and it is to be shown in the…

Q: Packer Wings Company received an advance payment of $144,000 for a consulting contract during the…

A: Unearned revenue, often recognized as deferred revenue, is money collected by a corporation from a…

Q: he following accounts appear on an entity's unadjusted trial balance: I. CASH - 190,000 II. ACCOUNTS…

A: Solution: Year end adjustment is required to be made to recognize revenue and expense on accrual…

Q: he end of the year, the company records an adjusting entry to accrue $125,000 of wages owed to its…

A: The accrued wages are yet to be paid at the end of the year . The wage expense has been incurred but…

Q: The supplies account has a balance of $4,400 at the beginning of the year and was debited during the…

A: Supplies used/expense = Beginning balance of supplies + Supplies purchased during the year - Ending…

Q: On May 1, 2021, Sayed Corporation received $80,000 in advance from Chantel Company for services to…

A: Advance Income in Quarterly Financial statements :       The advance income means the income…

Q: An enterprise opened for business in December of the current year. During the month, it renders…

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: XYZ Company purchased $40,000 worth of store equipment from Libby Company by paying $8,000 cash and…

A: We know that the accounting equation  Assets = Liabilities + Shareholders Equity

Q: An entity received cash of P24,000 on August 1 for one-year's rent in advance and recorded the…

A:

Q: Alomar Corporation had a balance of $1,000 in Prepaid Supplies at the beginning ofthe year. The…

A: Deferred expenses: Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: Iginla Inc. has a fiscal year end of December 31, 2024. Below are transactions that occurred during…

A: Adjusting entries are those entries which are passed at the end of accounting period to accurately…

Q: A company has a fiscal year-end of December 31: (1) on October 1, $26,000 was paid for a one-year…

A: Adjusting entries are recorded at the end of period in order to make sure that the company accounts…

Q: On December 31, Year 1, a company signed a one-year contract to provide services to a particular…

A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…

Q: Following are the amounts of the assets and liabilities of Greco Travel Agency at December 31, 2006,…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Wagner

A:

Q: At the end of the accounting period ending December 31 of the current year, the following totals…

A: Requirement:  Calculation of adjusted income and adjusted total assets from the given information.…

Q: An entity received cash of P24,000 on August 1 for one-year's rent in advance and recorded the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Prepare an income statement for the year ended December 31, 20Y5. Prepare a statement of owner’s…

A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.  A…

Q: Cheng Company has one year in unearned rent on the books in the amount of $3,000. The money was…

A: The adjusting entry for unearned rent is to debit the unearned rent and credit the rent revenue.

Q: On July 1 of the current year, the assets and liabilities of Logan W, BWW, are as follows: Cash,…

A: Total assets = Cash + Accounts Receivable + Supplies + Land = $27,000 + $12,300 + $3,100 + $35,000 =…

Q: Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the…

A: Income statement in the business shows total incomes and total expenses in the business and at the…

Q: Before any year-end adjustments were made, the profit of Pedro Co. was P2,000,000. However, the…

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made…

Q: On May 1 of Year 1 Mills Enterprises paid $3,780 cash for an insurance policy that would provide…

A: May 1 Year 1 to Dec. 31 Year 1 = 8 months Insurance expired = $3,780*8/12 Insurance expired = $2,520…

Q: On September 1, Year 1, Zelda Company collected $120,000 cash for services to be provided for one…

A: Given, Cash collected for the services to be provided in one year = $120,000 The fiscal year of the…

Q: ABC Company operates a branch. At the end of the year, the Branch account in the books of the home…

A: Solution Branch account is a bookkeeping system in which separates account are kept for each branch…

Q: The following income statement items appeared on the adjusted trial balance of Schembri…

A: The income statement is one of a company’s core financial statements that are prepared to find out…

Q: During the first year of operations, an entity recorded all purchases of supplies as asset. Store…

A: Solution: Amount of adjusting entry for supplies expense = Supplies purchased - Ending unused…

Q: A company paid its property taxes on October 1 for the period October 1, year 1 to September 30,…

A: A debit increases asset or expense accounts, and decreases liability, revenue or equity accounts. A…

Q: Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2021,…

A: The statement of comprehensive income is the financial statement prepared at the year-end by the…

Q: The following income statement items appeared on the adjusted trial balance of Schembri…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees…

A: Date Particulars Debit Amount Credit Amount June 1, Year 1 Bank A/c ......................Dr…

Q: The year-end adjusted trial balance of Hilltoppers Corporation included the following account…

A: Trial Balance: Trial balance is a statement of all the general ledger accounts of a business. This…

Q: After the accounts have been adjusted at March 31, the end of the fiscal year, the following…

A: Income summary account is account that is used at the time of passing closing entries to close…

Q: A-Z Construction Company was organized on May 1 of the current year. On May 2, A-Z Construction…

A: Adjusting entries: Adjusting entries refers to the entries that are made at the end of an accounting…

Q: On April 1, 2022, Lansing Corporation opened for business and paid 600 in insurance to cover the…

A: Prepaid expenses are in the nature of current assets which will bring economic benefits to the…

Q: The year-end adjusted trial balance of Aggies Corporation included the following account balances:…

A: Service Revenue = $900,000 Total Expenses = Salaries Expenses + Rent Expenses + Interest Expenses  =…

Q: At December 31, Rolison Consulting’s financial records show the following selected account…

A: Closing entries record all the revenue and expenses. The net effect of the closing entries is profit…

Q: Davis Company has the following accounts and balances at the end of the year: Cash, $1,200 Accounts…

A: Statement of owner's equity gives information about the changes in the owner's capital account.…

Q: Blum Services has the following unadjusted balances at year-end. Cash $12,900 Prepaid insurance…

A: Accounting Worksheet: Accounting Worksheet is a 10 column statement, where the summary of all the…

Q: All of the current year's entries for Zimmerman Company have been made, except the following…

A: The question is based on the concept of Financial Accounting.

Q: After the accounts have been adjusted at December 31the end of the fiscal year , the following…

A: Closing entries are passed to transfer the temporary accounts to permanent account.

Q: The adjusted trial balance of Amborse Corporation at December 31 shows that sales revenue for the…

A: Closing entries are used to transfer the balance from a temporary account to a permanent account. We…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.